By Mark Pender

NEW YORK (MNI) – MNI’s U.S. retail trade index was little changed
in the April 30 period at 58.2, above 50 to indicate growth but a bit
below trend to indicate slowing year-on-year growth, according to the
results of Market News International’s weekly survey released Monday.

Details are stronger than the headline with total sales at +5.2%,
up nine tenths in the week. Same-store sales are up three tenths to a
+3.0% level that’s tightly consistent with a low 5.0% rate on the total
side. The Commerce Department’s ex-auto ex-gas category showed a +5.1%
rate for March.

Looking at a monthly comparison, MNI’s data offer an early signal
for a roughly 1/2 percentage point ex-auto ex-gas gain.

Direct sales of exercise equipment finally improved at Nautilus
(NLS) which is benefiting from rising credit approvals, at 21% of
applications vs. 13% in the year-ago quarter.

In another sign of discretionary strength, boating supply chain
West Marine (WMAR) reports strong sales of high-ticket goods and is
raising its outlook for the summer boating season. Dealership chain
MarineMax (HZO) is reporting improving trends going into the season.

AutoNation (AN) is cutting its full-year U.S. sales forecast to the
mid 12 million unit area from 12.8 million. The chain of 243 dealers
expects a significant reduction in Japanese shipments through year end
with normal shipments resuming early next year.

Asbury Automotive Group (ABG), which operates 81 dealers, expects
meaningful supply disruptions ahead. With supply of Japanese brands at
45-50 days, the chain is raising margins and promoting used cars.

Group 1 (GPI) sees a 30 to 50% shipment reduction of Japanese
models this summer and the 103-dealer chain is warning that sales will
be constrained this quarter and possibly into the third quarter. The
chain is raising its margins.

Income for the sample is rising slowly, at a year-on-year +10% in
the current sample. Sample size is 170 chains making up 158,000 separate
retail locations.

Editor’s Note: MNI compiles its retail trade index based on a
weekly sample of company news and data.

** Market News International New York Newsroom: 212-669-6430 **

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